Landlord keeps the deposit, but no interest is added. The deposit will be returned when you vacate your residence. However, fees for the repair of damaged equipment and unpaid bills for utilities are subtracted if the tenant vacated the residence leaving these unpaid. Charges for replacing tatami mats and paper doors may also be deducted.
On the most of the leasing contract, it is mentioned that the deposit shall be refunded within a couple of month after the lessee vacates.
Useful information for living in japan
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